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A Private May Cost Less Than You Think! When Applying to , Compare Four-Year Graduation Rates You Are 61% More Likely to Graduate at a Private College Don’t let the “list price” of tuition scare you away from considering a private college ! Attending a private college may actually not cost any more – or much more – than a state ! Your family wouldn’t buy a house based solely on list price. Your family wouldn’t buy a car based just on list price. You’d look at quality and “the fit,” right? Likewise, smart families don’t select a college based solely on list price! When you determine what represents Graduation March at Eastern Mennonite , a Tuition Rewards member “quality” for your child, there are numerous factors vital Year Five, will your child be working – and earning a living? to consider beside cost. And, when you do look at cost, be Or, still the primary customer of “The Bank of Mom & Dad”? aware that the “list price” numbers don’t always paint a A U.S. Department of Education 2002 survey of freshmen realistic picture. Two reasons: who entered college in 1995-96 showed that, of the private 1. Tuition Discounts — According to a National college/university graduates, 79% had finished in four Association of Independent Colleges & (NAICU) years. Of public college/university graduates, only 49% had survey, 87.5% of first-time, full-time private college finished in four years. In other words, your likelihood of freshmen are receiving some reduction from the listed price graduating in four years is 61% at a ! of tuition! Total scholarship aid is equivalent to 37% of all The “gap” between private and public college graduation tuition & fee revenue. For 2010-11, the “list price” of tuition rates remains huge. Example: In 2009 (the most recent at NAICU member was $27,293; but, the average out- year for which federal statistics are available), the four-year of-pocket “net cost” (after benefits) was only $11,320. graduation rate for The College of Wooster (private) in The discounts were based on such factors as “financial was 67.6% — versus 48.5% for the main campus of Ohio need” (as determined, primarily, by the FAFSA form); on State, 23.9% for Kent State and 11.3% for Youngstown State. an individual evaluation resulting in a “merit award” (also (Methodology: For individual colleges, the statistics reflect known as a scholarship or grant); or, a discount through students who started as freshman and graduated from that school SAGE Tuition Rewards. It’s a national trend that “grant aid” four years later; transfers are considered non-graduates. The is rising as private colleges try to remain affordable. Department of Education statistics include transfer students who graduated in four years despite changing schools.) 2. Graduation Rates – Smart families consider the th th potential financial impact of a 5 or 6 year of college. In (continued on page 2) (continued from page 1) be of minimal benefit? 4-Year Graduation Rates: 6 Years of College? • Average Class Size: Small classes The six-year graduation rate for Sample, Tuition Rewards tend to be far more engaging, public institutions is comparable to Member Colleges involving and motivating. However, the four-year graduation rate at private Susquehanna University (PA) 80.1% colleges can save money by institutions. That’s right – private St. Lawrence University (NY) 78.6% teaching undergraduates in large- colleges & universities are graduating Clark University (MA) 72.8% lecture classes — or by using Saint Mary’s College (IN) 72.8% the same percentage of students in “teaching assistants” who lack Beloit College (WI) 72.5% PhDs. The “faculty-to-student four years that state schools do in six! Messiah College (PA) 72.0% ratio” may not be an accurate Students who attend a private Taylor University (IN) 70.9% indicator of undergraduate class institution not only are more likely to Saint Michael College (VT) 70.7% sizes if full professors spend much graduate in four years – they are more & Jefferson (PA) 68.2% Lebanon Valley College (PA) 68.1% time doing research -- or work likely to graduate, period! A recent The College of Wooster (OH) 67.6% mostly with graduate students. study by the Independent Colleges of Austin College (TX) 67.5% “Average class size” doesn’t always (ICI) showed that the state’s Allegheny College (PA) 66.3% reflect the quality of teaching; 31 private colleges & universities were University of (CA) 65.6% because of tenure [guaranteed enrolling 20% of the state’s incoming Creighton University (NE) 64.4% employment], some classes may freshman – but issuing 35% of all Valparaiso University (IN) 63.3% be small because of the faculty bachelor’s degrees. Indiana’s private member’s lack of popularity. college students are 90% more likely schools are likely to become more to graduate in four years than state crowded, making it even more difficult The Right Questions to Ask college students. to graduate in four years. It is very helpful for families to More Crowded Public Colleges? Self-Disciplined, Self-Motivated? research these factors: Dr. James Johnston, the founder of At SAGE Scholars, we’re great • What is the average class size? SAGE Scholars and a former Director believers in all forms of . What’s the percentage of classes of Admissions & Financial Aid at the We feel that public colleges can be offered with less than 20 students? Wharton , University wonderful for certain undergraduate With more than 50 students? of Pennsylvania, believes that one students – self-disciplined… self- • What’s the percentage of classes effect of the recent stock market motivated… self-starters able to handle not taught by full professors? decline may be to negatively impact peer pressure well and able to thrive • How do the school’s full professors graduation rates at public colleges & in the large lecture-hall environments spend their time: Teaching universities. He believes that state that are so prevalent during the early (continued on page 3) years of college. Why are there significant cost 4-Year Graduation Rates: differences between public and Sample, Public Institutions private institutions? Certainly, financial Univ. of Michigan - Ann Arbor 72.7% support from state legislatures is the Penn State - main campus 62.1% largest factor. But also, the “economies Rutgers Univ. - main campus 52.2% of scale” tend to be very different for Univ. of Wisconsin - Madison 48.4% public and private institutions; families Texas A&M University 45.4% University at Buffalo 42.0% need to consider how these might Temple University 38.2% affect their child’s educational and Purdue University (IN) 37.5% social experiences: West University 32.2% • Enrollment size: Four-year public Kansas University 31.8% colleges and universities enroll University of Tennessee 31.2% University of 29.5% an average of 9,642 students – Arizona State University 29.3% more than four times larger than Kent State (OH) 23.9% the average at four-year private Northern University 22.8% institutions (2,147 students). Univ. of Cincinnati - main 20.2% Would your child be better off at Univ. of Nevada-Las Vegas 12.0% a smaller, more intimate, more Youngstown State U. (OH) 11.3% Austin College Biology Lab caring environment – or will this This is not the campus! Eckerd College students on expedition during their three-week winter “term” undergraduates, teaching graduate size, private colleges tend to provide consulting firm, surveyed more than students or doing research? the following advantages: 10,000 alumni from 800 different Graduation rates can also be • Greater opportunities for close colleges to examine the relationship affected by: faculty relationships, with more between college experiences and mentoring opportunities career / life outcomes. Among many • Availability of classes necessary findings: Having a mentor in college • More study-abroad to meet graduation requirements is strongly correlated with several opportunities in your major? A major criticism of important life outcomes: More community service public institutions is that courses • opportunities required to complete a major • College graduates who recall a – ones that are not particularly • More leadership opportunities mentor or role model during their popular, requiring small classes in clubs & organizations college years were much more – tend to be offered infrequently, • More internship & work study likely to report that their college making four-year graduation opportunities experience helped them develop difficult. Private colleges, more • Better career guidance two of the most highly-prized traits aware of the “sticker price”, tend Families need to consider the (continued on page 4) to be more “customer-friendly” “track records” of possible college and impose fewer obstacles to destinations in the post-college arena. graduating in four years. This is Do students gain high-paying jobs especially true if a student changes directly after graduation? Or, do his/her major -- and needs an students gain admission to graduate advisor’s help in staying on track schools in professions where an to graduate on time. advanced degree is either essential • “Party school” environment? or provides an edge (doctor, dentist, Getting caught up in the “social lawyer, psychologist, educational whirl” at college can certainly affect administrator, business leader, etc.)? the likelihood of graduating in four Nationally, 33% of the alumni years. As usual, large state schools of private colleges go on to earn dominate the Princeton Review’s graduate degrees – versus 28% of state list of “Best Party Schools”. Only university alumni. two private colleges ranked in the “top 20.” The Impact of a College ‘Mentor’ Internships, Career Guidance Families often wonder how your choice of college affects your life. Largely because of their smaller Hardwick Day, a higher education Astronomy, Emory & Henry College (continued from page 3) in today’s workplace – leadership skills and the ability Cost Comparison Example: to work as part of a team. • Alumni who had mentors in college are more likely to Public vs. Private have earned a graduate degree; and, they express more openness to lifelong learning. They are considerably College Education more likely to believe it is important to continue learning Public Private new information and skills. Tuition (“list price”)* $6,900 $25,000 • Alumni who had mentors in college express a different set of values. They are more likely to report their college Room & Board $8,000 $8,000 experiences helped them form moral principles that Books, Misc. $2,000 $2,000 guide their actions. In their current lives & careers, they’re more involved in community activities — and Annual Cost $16,900/yr. $35,000/yr. more likely to say it’s important to integrate faith and *before scholarships or discounts spirituality into their lives. Times 5 years $84,500 Mentors More Likely at Private Colleges Times 4 years $140,000 While the benefits of having a mentor hold true across all sectors of higher education, Hardwick Day found that Plus ‘Opportunity Cost’* $33,500 $0 private college graduates nearly always recalled one or more Total Actual Cost $118,000 $140,000 mentors from their undergraduate years -- most often a professor but sometimes others in the campus community. * Opportunity Cost: Not in job market because still in school. Loss of salary (average, after ) graduates were significantly less likely to experience mentoring. In fact, even among the graduates Less: Tuition Rewards of the nation’s 50 top-ranked public universities, more than Scholarship Example* $0 -$20,000 half of the alumni reported they had no mentor or role model during their college years. *only at participating private colleges Focusing on perceptions of differences in career Actual Cost after preparation, skill development, personal values and Tuition Rewards $118,000 $120,000 community involvement by these 10,000+ alumni, Hardwick Day concluded, “The undergraduate experience that students encounter at small, residential liberal arts [private] benefits than the education experienced at large, public colleges is more effective in producing meaningful and lasting universities…” To Summarize: • Cost — For 87.5% of students, tuition discounts reduce the cost to attend a private college. The cost disparity between private and public institutions is even more significantly reduced when you factor in the increased likelihood of five or six years to graduate at a state college or university. • Quality — Families should be aware of the qualitative differences in the private college experience: (1) More engaging, smaller classes; (2) More faculty interaction and mentoring; (3) More leadership opportunities; (4) Better advising & career placement; (5) More community service experiences that can enrich faith and foster good values. • Mentoring – Having a “mentor” is more likely at a private college or university. This, in particular, leads to: (1) Increased graduate school education; (2) Development of leadership and teamwork skills applicable in the workplace; and, (3) A Informal instruction, Lincoln Memorial University (IL). greater lifetime commitment to community service. Almost Three Times as much Financial Aid as State Schools Private Colleges are More Affordable than You Realize

Private Colleges and Universities are considerably more affordable than you may realize.

Here are some startling statistics that demonstrate why you ought to consider attending an independent college – especially our Tuition Reward members:

$21,208 — the average that a private college spends to educate its students, far more than at a ($10,000). The quality of education tends to be superior at private colleges because of the belief in small classes and in personalized education. Private colleges hire more faculty members per student & spend considerably more per student for career / job placement services.

87.5% — the percentage of students who receive financial aid at private colleges and universities!

70% — the typical “grant” [tuition discount] portion of the financial aid package at a private college — versus 30% loan. (In addition, work study is often available).

$14,400 — the size of the average four-year private college financial aid package ($10,080 grant, $4,320 loan) – is almost three times as large as the average at a four-year public (state) school ($5,400).

$16,220 — the average net cost per year that private Enjoying class outdoors at Clark University (MA) college students actually pay. This represents a 38.3% discount off the average “list price” for private college 64% — the percentage of private college students in tuition of $26,300/year thanks to grants, scholarships Pennsylvania (for example) who graduate in four years. At and merit aid. The $16,220 average annual net cost state-related schools (Lincoln, Penn State, Pitt, Temple), INCLUDES loans of $4,320/year. only 44% of students graduate in four years. The four-year graduation rate is 32% at Pennsylvania’s 14 state-system 6.5% -- The current rate that tuition is increasing at public colleges. colleges & universities. This is almost 50% more than the current rate of tuition increases at private institutions of Nationally, private college students are as likely to earn a 4.4%. degree in four years as state school students are in six years. Private college students not only graduate sooner but are Private colleges spend twice as much to more likely to ever graduate. In years five and six, private college students tend to be working or in graduate school educate students. 86% of all private college — rather than still on the “bank of mom & dad.” students receive financial aid. Source: College Board, 2009 10 Facts About Private Colleges & Universities 1. There are 1,541 private, non-profit four-year colleges and universities in the 2. Over 70% of the four-year colleges and universities in the United States are private. 3. More than 5 million students attend private colleges and universities. A math discussion at Capital University (OH). 4. Proportion of U.S. college graduates who earn degrees from 7. 22 of the 33 (67 percent) independent colleges and universities: college-educated U.S. presidents Number of U.S. Non-Profit graduated from private colleges. • Bachelor’s: 34 percent Colleges & Universities 8. 74 percent of 2007 Rhodes • Graduate: 43 percent Scholarship winners were enrolled in Public Private private colleges and universities. • Professional (law, medicine, 2-year 1,085 135 , business, etc.): 9. 58 percent of 2001 National 60 percent Merit Scholars enrolled in private 4-year 628 1,541 5. 50 percent of senior corporate colleges and universities. Full-Time executives with an undergraduate 10. Payscale.com’s 2008 survey of degree earned it at a private college the average salary for graduates of 268 Undergraduate Students or university. Of those with graduate colleges showed that, for products of Public Private degrees, 62 percent received them at independent colleges and universities. a private institution. the average during the first five years 2-year 7,101,000 420,000 6. 46 percent of U.S. following graduation was $50,757. 4-year 7,709,000 5,197,000 Congressional representatives earned For public colleges & universities, the Source: U.S. Dept of Education their from a average salary was $44,518 -- a 14% private college or university. difference.

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